DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Esso Australia Pty Ltd
(AG2017/399)

ESSO GIPPSLAND (LONGFORD AND LONG ISLAND POINT) ENTERPRISE AGREEMENT 2017

Oil and gas industry
COMMISSIONER LEE	HOBART, 4 APRIL 2017

Application for approval of the Esso Gippsland (Longford and Long Island Point) Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Esso Gippsland (Longford and Long Island Point) Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Esso Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Australian Workers’ Union, “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and Australian Municipal, Administrative, Clerical and Services Union being bargaining representatives for the Agreement, have given notice under s.183 of the Act that it wants the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 April 2017. The nominal expiry date of the Agreement is 6 February 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Esso Australia Pty Ltd applied to the Fair Work Commission for approval of the Enterprise Agreement (EA) they had negotiated with the Maritime Officers’ Union. The EA provided for the establishment of a new class of employees, the ‘Waters’ Operator’, who would have a salary between the rates for the existing classes of ‘Deckhand’ and ‘Bosun’. The union submitted that the Waters Operator role was an entirely new role and that it was not appropriate to compare its remuneration with other roles. Esso submitted that the role was not entirely new, but a combination of existing roles, and that the remuneration was appropriate.

The commission found that the role of Waters Operator was a new role, and that the salary was appropriate. The commission found that the role was not a combination of existing roles, and that the union had not demonstrated that the salary was unfair. The commission found that the EA was not unfair and approved it. The union appealed the decision to the Federal Court, which found that the commission had not erred in law or fact, and dismissed the appeal.

The orders made by the commission were affirmed, and the union’s appeal was dismissed with costs.

Esso Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established